Text: SF00414 Text: SF00416 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 479A.27 TIME OF REVERSION. 1 2 Underground storage rights are presumed to be extinguished 1 3 upon cessation of operations to inject and remove natural gas 1 4 in the naturally occurring subsurface stratum or naturally 1 5 occurring formation of the earth and are finally divested one 1 6 year after the pipeline company has received an abandonment 1 7 order from the federal energy regulatory commission or a 1 8 predecessor or successor of the commission. The surface or 1 9 adjacent landowner may acquire ownership of facilities 1 10 associated with an abandoned underground storage facility 1 11 pursuant to this chapter. If ownership of facilities is not 1 12 obtained, the pipeline company shall remove ancillary surface 1 13 facilities within one year of the presumed extinguishment of 1 14 the underground storage rights. 1 15 Sec. 2. NEW SECTION. 479A.28 REVERSION OF UNDERGROUND 1 16 STORAGE RIGHTS. 1 17 1. If underground storage rights are presumed to be ex- 1 18 tinguished under section 479A.27, the underground storage 1 19 rights pass to the surface landowner at the time of divestment 1 20 under section 479A.27. 1 21 2. Any surface property easement ancillary to the under- 1 22 ground storage project pass to the adjacent landowner or 1 23 landowners at the time of divestment under section 479A.27. 1 24 If different adjacent landowners are situated on either side 1 25 of the surface property easement involved, each adjacent 1 26 landowner takes to the center of the surface property easement 1 27 of the pipeline company. 1 28 3. Section 614.24, which requires the filing of a verified 1 29 claim, does not apply to reversion of property rights under 1 30 this section. 1 31 4. A surface landowner or an adjoining landowner may 1 32 perfect title under this section by filing an affidavit of 1 33 ownership with the county recorder in the county in which the 1 34 overlying or ancillary property of an underground storage 1 35 facility claimed by a landowner is located. The affidavit 2 1 shall include the name of the surface landowner or the 2 2 adjoining landowner, a description of the property or rights 2 3 subject to reversion, the present name of the pipeline 2 4 company, the jurisdiction, docket number, and date of 2 5 abandonment order of the federal energy regulatory commission 2 6 or a predecessor or successor of the commission, and if 2 7 applicable the approximate date the surface facilities 2 8 ancillary to the project were removed. A copy of the 2 9 affidavit must be mailed by the landowner by certified mail to 2 10 the pipeline company. The landowner is liable for taxes on 2 11 the property interest from the date the affidavit is filed. 2 12 Sec. 3. NEW SECTION. 479A.29 SALE OF UNDERGROUND STORAGE 2 13 RIGHTS. 2 14 Subject to section 479A.28, and except for a transfer to an 2 15 affiliate or successor of the pipeline company, when a pipe- 2 16 line company, its trustee, or its successor in interest has 2 17 interests in real property, other than an easement, but 2 18 including fixtures, ancillary to an underground storage 2 19 project adjacent to or upon an easement that is abandoned by 2 20 order of the federal energy regulatory commission or a 2 21 predecessor or successor of the commission, reorganization 2 22 court, or bankruptcy court, or when a pipeline company, its 2 23 trustee, or its successor in interest seeks to sell its 2 24 interests in that property under any other circumstance, the 2 25 pipeline company, its trustee, or its successor in interest 2 26 shall extend a written offer to sell at a fair market value 2 27 price to the persons holding leases, licenses, or permits upon 2 28 the property, or the owner of the adjoining or surface 2 29 property, allowing sixty days from the time of receipt for a 2 30 written response. If a disagreement arises between the 2 31 parties concerning the price or other terms of the sale 2 32 transaction, a party may make written application to the 2 33 compensation commission created under section 6B.4 to resolve 2 34 the disagreement. The application shall be made within sixty 2 35 days from the time an initial written response is mailed to 3 1 the pipeline company, trustee, or successor in interest by the 3 2 party wishing to purchase the property. The compensation 3 3 commission shall notify the department of inspections and 3 4 appeals which shall hear the controversy and make a final 3 5 determination of the fair market value of the property and the 3 6 other terms of the transaction which are in dispute, within 3 7 ninety days after the application is filed. All 3 8 correspondence shall be by certified mail. 3 9 The decision of the department of inspections and appeals 3 10 is binding on the parties, except that a party who seeks to 3 11 purchase the real property may withdraw the offer to purchase 3 12 within thirty days of the decision of the department. If a 3 13 withdrawal is made, the pipeline company, trustee, or suc- 3 14 cessor in interest may sell or dispose of the real property 3 15 without further order of the department of inspections and 3 16 appeals. 3 17 This section does not apply when underground storage rights 3 18 are conveyed for continued underground storage use. 3 19 Sec. 4. NEW SECTION. 479A.30 VALUING PROPERTY IN 3 20 CONTROVERSY. 3 21 The department of inspections and appeals' determination 3 22 and order shall be just and equitable and in the case of the 3 23 determination of the fair market value of the property, shall 3 24 be based in part upon at least three independent appraisals 3 25 prepared by certified appraisers. Each party shall select one 3 26 appraiser and each appraisal shall be paid for by the party 3 27 for whom the appraisal is prepared. The two appraisers shall 3 28 select a third appraiser and the costs of this appraisal shall 3 29 be divided equally between the parties. If the appraisers 3 30 selected by the parties cannot agree on selection of a third 3 31 appraiser, the compensation commission shall appoint a third 3 32 appraiser and the costs of this appraisal shall be divided 3 33 equally between the parties. 3 34 The department's determination and order is final agency 3 35 action for the purpose of judicial review by the district 4 1 court as provided in chapter 17A. 4 2 EXPLANATION 4 3 This bill provides for the reversion to the surface land- 4 4 owner or underground natural gas storage rights when storage 4 5 or recovery operations cease and the gas pipeline company 4 6 receives an abandonment order from the federal energy regula- 4 7 tory commission. Provisions are also made for adjacent land- 4 8 owners to acquire surface property rights ancillary to the 4 9 abandoned underground storage project. Similar to the rever- 4 10 sion of railroad rights-of-way to adjacent landowners, this 4 11 bill provides procedures for valuation and settling of dis- 4 12 putes. 4 13 LSB 2554SV 76 4 14 js/jw/5
Text: SF00414 Text: SF00416 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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